Huarong’s shareholders brace for more beatings

XinKong International Capital Holdings

30/08/2021 04:07

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Pete Sweeney
    HONG KONG, Aug 30 (Reuters Breakingviews) - The Chinese
asset manager lost $16 bln last year and its indebted offshore
subsidiary is still bleeding. A planned state-led restructuring
will give creditors relief but dilute equity investors. The
stock, down 75% in three years before being halted, is due
further correction.
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    CONTEXT NEWS
    - China Huarong Asset Management on Aug. 29 reported a 158
million yuan ($24.5 million) net profit in the first six months
of 2021. 
    - The state-owned asset manager also released long-delayed
performance figures for 2020, in which it declared a loss of $16
billion. 
    - Subsidiary Huarong International Financial Holdings
reported a total comprehensive loss of HK$288 million ($37
million) for the same period. 
    - Shares in both entities remain under trading halts.  

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
China's Huarong posts $24.5 mln first-half profit after annual
loss     urn:newsml:reuters.com:*:nL1N2Q00PL
China Huarong Asset Management Interim 2021 report    https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0829/2021082900395.pdf
BREAKINGVIEWS-Huarong rescue clarifies moral hazard only so much
    urn:newsml:reuters.com:*:nL4N2PQ0EG
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Robyn Mak and Katrina Hamlin)
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